Realty sector welcomes BMC's proposal to hike FSI in Greater Mumbai

Presses for speedy development of physical and transport infrastructure to take on burden; hopes more housing stock and price correction

Realty players have welcomed the the BrihanMumbai Municipal Corporation's proposal to increase floor space index (FSI) up to 8 in the Development Control Rules to be applicable till 2034. Currently, there is 1.33 FSI for island city and 1 FSI for suburbs.

The permissible FSI will eventually increase as per the locations with better infrastructure connectivity, accessibility, area’s future potential, its proximity to transit stations and the existing levels of FSI consumed. 

Mumbai has been divided into five zones and 58.12% of city's land would come under 3.5 FSI.  Further, an FSI of 5 to 6.5 is being provided for areas that are well connected by public transport and quite close to railway stations and existing and upcoming metro stations.

However, the realty players and town planners press for stepping up efforts simultaneously to upgrade city's infrastructure to take up the burden following proposed rise in FSI and the subsequent vertical development.

FSI is the ratio of the permissible built-up area to the plot area. BMC official, who did not want to be identified, explained that more FSI has been proposed near railway stations and other transport junctions and thereby develop infrastructure.

National Real Estate Development Council President Sunil Mantri told Business Standard, ''So far Mumbai was unexplored in terms of reforms of FSI compared to Dubai, Singapore, Hong Kong. Historically, hundreds of buildings are constructed in Mumbai with 4 and above FSI in the old days. However, the government later reduced FSI to 1.33 for island city and 1 for suburbs. This was done to control the development but it actually created chaos and brought the development to substantial lower phase resulting in the huge housing shortage in the limited land availability.''

Mantri said BMC's proposal is step in the right direction especially when there have been restrictions due to Coastal Regulation Zone notification, limited land availability, higher cost of land.

''The relaxation in the FSI will increase supply drastically and also ease out the pricing pressure in the coming months. At the same  time the civic body and the state government  need to enhance the infrastructure in a massive way,'' he noted.

ACME Group managing director Munish Doshi said increase in FSI will lead to transparency and promote affordable housing. ''However, the government should facilitate that the time taken for various approvals is reduced.

There will be lesser dependency on transfer of development right (TDR). Realty players will pay the premium to BMC instead of buying it from TDR market. This will result in reduction in residential prices,'' he hoped.

Further, Nahar Group's vice chairperson Manju Yagnik said it will impact only a few crowded areas of the city especially in places where infrastructure projects are coming up and there is no space to grow vertically.

''Otherwise, it is an overall good decision in Mumbai where land is scarce and old dilapidated buildings need immediate attention. Infrastructure development is already on way of being developed to meet the increasing demand. Once these major infrastructure projects are completed and old ones are upgraded the burden will be taken care of,'' she  noted.